Hard Money Loans in Harvard
Suppose that you've stumbled upon this truly good bargain on a fix and flip property in a terrific location, and you're either a seasoned real estate investor or a first-timer who wants to try his hand at flipping. Everybody knows that knowledgeable professional flippers, such as Tarek and Christina El Moussa from HGTV's reality home flipping series, Fix or Flop, can turn an average profit margin of $40,000 to $50,000 in their rehab business. And indeed, they are aided in a big way as a result of their professional know-how, auction expertise and knowledge of hard money loans. Having said that, you've recently been brushing up your rehab and remodeling knowledge, have a licensed contractor ready for the project and are positive that you're capable of doing an impressive job for this house.
But money is often a different question altogether. Should you opt for an ordinary loan from the bank, you will wind up waiting around roughly 30-60 days up until the time the money is authorized and your funding is ready to go. Due to the fact all the sellers are looking for a fast closing, that does not seem like a good idea to you in the slightest.
On top of this, banks have been tightening their lending standards as of late, making it hard for people to obtain an ordinary loan if their credit situation is not perfect or he does not have a regular salaried profession. So does that leave you with no other option, but to drop your dream of getting into flipping? Certainly not, considering that you could always use the Harvard, Massachusetts hard money loan approach to fund your rehab project.
A hard money home loan in Harvard can provide what's regarded as crucial to many real estate transactions — a quick closing of just a few weeks and more often than not even less. Aside from that, financing can be made up to 70% loan-to-value of the as-is property value, as deemed by a qualified appraiser. Some people consider hard money real estate loans to be costlier than ordinary financing, because the lending rates for such loans ordinarily start at 10%. But in reality, the lending rate is not as pertinent for these loans, since they aren't long-term loans. Short-term loans of a couple months to a few years are best approached as cost of capital, the same as every other expense associated with a project. And once you've flipped the home, recovering this expense is comparable to recouping the expense for all the bathroom updates you performed.
Moreover, even an individual with poor credit can still be eligible for a hard money mortgage. As an alternative for focusing solely on the person's credit score or net income, Harvard hard money lenders, who can be a private company or an individual person, authorize a loan as a result of assessing the home value, its marketability, its location, and the likelihood of recouping their capital in case they have to foreclose the loan. Adding to that, if the borrower can demonstrate past experience in similar real estate endeavors, can put down money for the down payment, and the value of similar houses in the neighborhood works to his benefit, he stands an excellent shot of qualifying to obtain a hard money real estate loan.
So should you run into a very good and worthwhile investment opportunity, be assured you'll have a hard money lender in Harvard, ready to lend you the money that you need. Complete the form or get in touch with us via phone to talk about the project you have in mind.
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